Comparison of Anticipated Retirement Ages for Various Generations in the U.S., From Gen Z to Boomers, Alongside Expected Savings. Are Your Plans Aligned?
In a recent survey by Charles Schwab, professionals of different generations hold varying views on retirement savings goals and the ideal age to leave the workforce for good. The survey sheds light on retirement issues, providing insight into retirement confidence, income needs, investment trends, savings habits, and more in 2025.
According to the survey, many Americans consider $1.46 million the minimum for a comfortable retirement, per a Northwestern Mutual report. However, only one-third of respondents report feeling "very likely" to achieve their retirement savings goal.
The average age to retire for U.S. workers is 62, according to a 2024 Mass Mutual study, and this figure remains consistent in the latest Charles Schwab survey. Interestingly, the expectations for retirement age vary across generations. Gen Z expects to retire at age 62, Millennials at age 65, Gen X at age 66, and Boomers at age 69.
Monthly expenses, stock market volatility, unexpected costs, credit card debt, and medical bills are other common challenges in saving for retirement. Inflation is the primary obstacle hindering U.S. workers' ability to save for retirement, according to the survey (57%).
Average retirement savings goals and actual median/average savings vary notably across U.S. generations. The median retirement savings by age groups, based on the 2025 Federal Reserve Survey of Consumer Finances and corroborated by NerdWallet, are as follows:
- Under 35 (mostly Gen Z and young Millennials): median savings about $18,880.
- Ages 35-44 (older Millennials and younger Gen X): median savings about $45,000.
- Ages 45-54 (Gen X): median savings around $115,000.
- Ages 55-64 (older Gen X and Boomers): median savings about $185,000.
- Ages 65-74 (Boomers and some Silent generation): median savings around $200,000.
- Ages 75+ (Silent generation and older): median savings drop to about $130,000.
Younger generations (Gen Z and Millennials) have lower actual median savings so far due to their age but expect to retire somewhat earlier (Gen Z at 62) and aim for about $1.6 million in total savings. Older generations like Boomers, despite higher median actual savings, expect to retire later (around 69) due to economic uncertainty and are less optimistic about reaching their goals.
Lee McAdoo, managing director of Schwab Retirement Plan Services, stated that inflation and market volatility are top concerns when developing a retirement strategy. The survey's findings illustrate a contrast: earlier generations typically have more accumulated savings but plan to work longer, while younger ones save less currently but hope to retire earlier with targeted savings goals.
Most savers are prioritizing consistency in terms of their contribution rates and are largely avoiding dipping into their retirement savings, according to the survey. On average, respondents expect their retirement savings to last for 22 years, compared with 23 years in 2024. Despite the lower retirement savings goals in 2025, it's crucial for individuals to continue saving and planning for their golden years.
- To reach their retirement goals, many Americans are focusing on personal-finance strategies that emphasize consistent savings contributions, while minimizing withdrawals from their retirement funds.
- In terms of investment trends, the survey reveals that older generations, like Boomers, prioritize financial security and tend to invest most of their savings into relatively stable products, such as bonds and fixed income, due to concerns about inflation and market volatility.
- The survey also shows that leadership in the personal-finance and investment industry plays a significant role in helping younger generations (Gen Z and Millennials) stay on track with their retirement savings goals by providing guidance on efficient investment strategies and growth opportunities.
- The growth of investment in companies prioritizing environmental, social, and governance (ESG) strategies has also been a noteworthy trend in 2025, as aspiring investors seek opportunities to align their values with their investment choices.
- As a result of the survey findings, financial professionals and policymakers should focus on enhancing retirement savings education, available financial products, and planning resources, ensuring that everyone, regardless of their generation, has the tools necessary for a comfortable retirement.
